Recommendation of trackers or funds to take advantage of the drop in Ftse 100 and falling pound

mears1

Can anyone confirm in simplistic lingo if the drop in the Ftse 100 has a significant affect on the price of global trackers? It doesn't appear to be when reviewing the price of trackers like Fidelity Index world and Vanguard ftse developed world ex Uk? It is just that when the ftse 100 dropped in March, these trackers dropped in price.

 As per title, is there any recommendation of trackers or funds (not shares) to take advantage of the drop in Ftse 100 and falling pound?

Might have a dabble tomorrow as I have cash in isa S&S just sitting there. With your crystal ball/experience would tomorrow be good to buy some global trackers?

El_Torro

If you want to take advantage of the falling pound, and assume it will continue to fall, then funds which invest in the US would be a good choice. Assuming you believe the dollar will stay strong. This is because if the dollar gets stronger against the pound your investment will increase. Your investment can still fall at the same time as the pound getting weaker of course.

I'm not clear what funds you should buy to take advantage of the FTSE 100 specifically falling. Remember that the UK (not just the FTSE 100) makes up about 4-5% of global stocks, so not a huge proportion. 

Tomorrow is a good time to buy global trackers, in the sense that now is better than later and time in the market is what is important. Your investments might drop in the short term but over the long term you should be OK.

eskbanker

The FTSE 100 only represents 3-4% of global market capitalisation, so by itself will have little impact on global funds (that'll be driven much more by US performance), and even less on those that are ex-UK!

bostonerimus

I recommend you come up with a long term financial plan using index trackers or multi-asset funds to meet your financial goals rather then trying to profit from short term market fluctuations…that way madness lies.

dunstonh

Can anyone confirm in simplistic lingo if the drop in the Ftse 100 has a significant affect on the price of global trackers?

An insignificant figure you wouldn't even notice.  It is worth noting that many other countries are down far worse than the FTSE100.  The US stockmarkets for example.

It doesn't appear to be when reviewing the price of trackers like Fidelity Index world and Vanguard ftse developed world ex Uk?

The latter has a clue in the name of the fund... ex UK. So, the UK has nothing to do with it.

 It is just that when the ftse 100 dropped in March, these trackers dropped in price.

You are trying to link two things that are not linked.

 As per title, is there any recommendation of trackers or funds (not shares) to take advantage of the drop in Ftse 100 and falling pound?

Global trackers and a FTSE100 tracker (to some extent).

With your crystal ball/experience would tomorrow be good to buy some global trackers?

in your case, probably not.   You are driving blind and with your hands tied behind your back.

mears1

Hi Dunstonh

With your crystal ball/experience would tomorrow be good to buy some global trackers?

in your case, probably not.   You are driving blind and with your hands tied behind your back.

What are you trying to say? 

Millyonare

The time to benefit most from the falling pound (versus US$) was 12 to 18 months ago.

bostonerimus

mears1 said:

Hi Dunstonh

With your crystal ball/experience would tomorrow be good to buy some global trackers?

in your case, probably not.   You are driving blind and with your hands tied behind your back.

What are you trying to say? 

You talk of dabbling which is never a good approach to investing. Take a step back and do some reading about index trackers to understand what they contain. Then develop an asset allocation and plan that will help you meet your financial goals. It is foolish to plan your finances around currency and market fluctuations.

InvesterJones

Completely agree with the comments by Dunstonh and bostonerimus - short term trading or dabbling is best left to professionals.

However, if you believe the FTSE 100 and pound have dropped below their fair valuation (in your eyes) then there are several very cheap FTSE 100 tracker funds based in the UK that will get you more for your money than when they were valued higher.